Sericulture is an agro-based multitudinous activity which involves cultivation of mulberry, production of laying, rearing of silkworms for cocoons, marketing and reeling of cocoons for value added products such as processing and weaving of the yarn. It is a short gestation period labour intensive enterprise which can go a long way in promoting inclusive growth and alleviating poverty in rural areas. The present study was therefore carried out in order to analyse investment and returns pattern of cocoon production in Bilaspur district of Himachal Pradesh. Two-stage random sampling and proportional allocation method was used to prepare a list of sample farmers. Out of 60 silkworm rearers, 19 were large and 41 were small. The dry cocoon production per farm on small and large category was estimated at 8.25 kg (6.20 kg in spring and 2.05 kg in autumn) and 19.51 kg (16.67 kg in spring and 2.84 kg in autumn). The dry cocoon production per ounce of seed was found to be 20.28 kg and 26.14 kg on small and large category households for both the seasons together. The fixed cost of production / ounce for spring crop varied from 9.92 per cent on small farms to 14.75 per cent on large farms. The variable cost varied from 90.08 per cent on small farms to 85.25 per cent on large farms implying the economical use of fixed and variable resources by large growers. The gross returns per ounce seed basis ranged between ` 1,626 and ` 5,535 on small and large farms for the spring crop. The autumn crop was found to give negative returns; therefore farmers should be provided with technology which could reduce the moisture in the rearing room, develop humidity resistant races of silkworms as well as develop varieties of mulberry plantation which may yield good leaves just after rainy season. Highlights m Due to high humidity in the areas and less time available with the rearers to seriously perform sericulture activities output of cocoons in autumn is less which results in negative return in autumn season. m Silk worm seed was the most important variable in affecting the cocoon production.

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